- depletion deduction
- A deduction allowed in an income tax return to the owner of an economic interest in mineral deposits or standing timber. IRC § 613(a).
Ballentine's law dictionary. Anderson, W.S.. 1998.
depletion deduction
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Depletion (accounting) — Depletion is an accounting concept used most often in mining, timber, petroleum, or other similar industries. The depletion deduction allows an owner or operator to account for the reduction of a product s reserves. Depletion is similar to… … Wikipedia
depletion — An emptying, exhausting or wasting of assets. A reduction during taxable year of oil, gas or other mineral deposits or reserves (i.e., wasting assets) as a result of production. The process by which the cost or other basis of a natural resource… … Black's law dictionary
depletion — An emptying, exhausting or wasting of assets. A reduction during taxable year of oil, gas or other mineral deposits or reserves (i.e., wasting assets) as a result of production. The process by which the cost or other basis of a natural resource… … Black's law dictionary
depletion allowance — n. The tax deduction allowed to owners of property containing natural resources as the resources are used up. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008. depletion allowance … Law dictionary
depletion — de·ple·tion /di plē shən/ n: the reduction of the value of the assets of a company engaged in removing natural resources (as by mining) because of the decrease over time of the natural resources (as coal) available in or on the land being worked… … Law dictionary
Depletion allowance — A term for either (1) a periodic assignment to expense of recorded amounts or (2) an allowable income tax deduction that is related to the exhaustion of mineral reserves. Depletion is included as one of the elements of amortization. When used… … Energy terms
Depletion — An accrual accounting method that companies use to allocate the cost of extracting natural resources such as timber, minerals and oil from the earth. Depletion is calculated for tax deduction and bookkeeping purposes. Unlike depreciation and… … Investment dictionary
Cost Depletion — One of two accounting methods used to allocate the costs of extracting natural resources, such as timber, minerals and oil, and to take those costs as a tax deduction. Cost depletion looks at the total amount of the resource to be extracted, how… … Investment dictionary
Excess statutory depletion — The excess of estimated statutory depletion allowable as an income tax deduction over the amount of cost depletion otherwise allowable as a tax deduction, determined on a total enterprise basis. U.S. Dept. of Energy, Energy Information… … Energy terms
Percentage Depletion — A taxable deduction that assigns a set percentage of depletion to the gross income derived from extracting fossil fuels, minerals or other nonrenewable resources from the earth. Percentage depletion is provided as an incentive for drillers and… … Investment dictionary
